International Business Part One Background For International Business

Chapter One Globalization and International Business

Chapter Objectives
To define globalization and international business and show how they affect each other To understand why companies engage in international business and why international business growth has accelerated To discuss the major criticisms of globalization To become familiar with different ways in which a company can accomplish its global objectives To apply social science disciplines to understanding the differences between international and domestic business
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Definition of Globalization

The broadening set of interdependent relationships among people from different parts of a world that happens to be divided into nations

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Definition of International Business

All commercial transactions including sales, investments, and transportationthat take place between two or more countries

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International Business: Operations and Influences

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Factors in Increased Globalization

1. Increase in and expansion of technology 2. Liberalization of cross-border trade and resource movements 3. Development of services that support international business 4. Growing consumer pressures 5. Increased global competition 6. Changing political situations 7. Expanded cross-national cooperation
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The Criticisms of Globalization

Threats to national sovereignty Growth and environmental stress Growing income inequality

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Reasons That Firms Engage in International Business

Expanding sales Acquiring resources Minimizing risk

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Modes of International Operations

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Modes of Operation in International Business

Merchandise exports and imports Service exports and imports Tourism and Transportation Service Performance Asset Use Investments

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Types of International Organizations

Collaborative arrangements Strategic Alliance Multinational Enterprise (MNE)

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Physical and Social Factors Affecting International Business Operations

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Competitive Factors Affecting International Business

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Views on future of international business and globalization

Further globalization is inevitable. International business will grow primarily along regional rather than global lines. Forces working against further globalization and international business will slow down both trends.

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DEBATE

GLOBALIZATION VS. LOCALIZATION

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Globalization vs. localization

Globalization -Transfer and allocation of resources across the border - Developing expertise in a range of industries -

Localization Focusing on national boundary meaning effective control and management of local resource and sustaining development/security -Differences between rich and poor are getting bigger - Deterioration of utilization of local resources -

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Globalization vs. localization (1pm session)

Globalization - Flow of information/resources and exchanging ideas - technology transfer and a single community/culture - mass communication/

Localization -

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Class Room Activities

Critically discuss the role of globalization on Bangladesh

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